Group 1 Automotive Q3 Profit Misses View; Boosts Share Buyback - Quick Facts

(RTTNews) - Automotive retailer Group 1 Automotive, Inc. (GPI), reported net income for the third quarter of $32.77 million, up from $31.34 million in the year-ago period. However, earnings per share declined to $1.19 from $1.32 in the same quarter last year, on higher number of weighted average shares outstanding in the latest quarter.

On an adjusted basis, net income for the quarter was $31.54 million or $1.20 per share, compared to $29.69 million or $1.32 per share in the same period last year. On average, eleven analysts polled by Thomson Reuters expected the company to report earnings of $1.43 per share. Analyst estimates typically exclude one-time items.

Total revenues for the quarter rose 18 percent to $2.34 billion from $1.98 billion in the year-ago period. Analysts had a consensus revenue estimate of $2.33 billion for the quarter.

Earl Hesterberg, Group 1's president and chief executive officer said, "Group 1 Automotive continued to demonstrate strong top line growth of over 18 percent in the third quarter. However, margin pressures in the U.S. market and economic pressures in the Brazilian market limited our adjusted earnings growth to 5 percent. We are actively pursuing cost reduction opportunities to address both of these issues."

Group 1's board of directors increased the company's common stock share repurchase authorization by 50 percent, to $75.0 million. The company expects that any repurchase of shares will be funded by cash from operations. Repurchased shares will be held in treasury.